Exhibit 99.1
Item 6. Selected Financial Data
The following table sets forth our selected consolidated financial information for the periods indicated. You should read this information together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and with the consolidated financial statements and notes to the consolidated financial statements included elsewhere in this Current Report on Form 8-K.
Our consolidated financial statements are prepared in U.S. dollars and in accordance with generally accepted accounting principles in the United States (U.S. GAAP). The consolidated statements of income and cash flow data for each of the three years ended December 31, 2008, 2007 and 2006 and the consolidated balance sheet data as of December 31, 2008 and 2007 are derived from our audited consolidated financial statements included in this Current Report on Form 8-K. The consolidated statements of income and cash flow data for the years ended December 31, 2005 and 2004 and the consolidated balance sheet data as of December 31, 2006, 2005 and 2004 are derived from our audited consolidated financial statements that are not included in this Current Report on Form 8-K.
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| Year Ended December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (US$ in millions) |
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Consolidated Statements of Income Data: |
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Net sales |
| $ | 52,574 |
| $ | 37,842 |
| $ | 26,274 |
| $ | 24,377 |
| $ | 25,234 |
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Cost of goods sold |
| (48,538 | ) | (35,327 | ) | (24,703 | ) | (22,806 | ) | (23,348 | ) | |||||
Gross profit |
| 4,036 |
| 2,515 |
| 1,571 |
| 1,571 |
| 1,886 |
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Selling, general and administrative expenses |
| (1,613 | ) | (1,359 | ) | (978 | ) | (956 | ) | (871 | ) | |||||
Interest income |
| 214 |
| 166 |
| 119 |
| 104 |
| 103 |
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Interest expense |
| (361 | ) | (353 | ) | (280 | ) | (231 | ) | (214 | ) | |||||
Foreign exchange (loss) gain |
| (749 | ) | 217 |
| 59 |
| (22 | ) | (31 | ) | |||||
Other income (expense)—net |
| 10 |
| 15 |
| 31 |
| 22 |
| 18 |
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Income from operations before income tax |
| 1,537 |
| 1,201 |
| 522 |
| 488 |
| 891 |
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Income tax (expense) benefit |
| (245 | ) | (310 | ) | 36 |
| 82 |
| (289 | ) | |||||
Income from operations after income tax |
| 1,292 |
| 891 |
| 558 |
| 570 |
| 602 |
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Equity in earnings of affiliates |
| 34 |
| 33 |
| 23 |
| 31 |
| 13 |
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Net income |
| 1,326 |
| 924 |
| 581 |
| 601 |
| 615 |
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Net income attributable to noncontrolling interest |
| (262 | ) | (146 | ) | (60 | ) | (71 | ) | (146 | ) | |||||
Net income attributable to Bunge |
| 1,064 |
| 778 |
| 521 |
| 530 |
| 469 |
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Convertible preference share dividends |
| (78 | ) | (40 | ) | (4 | ) | — |
| — |
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Net income available to common shareholders |
| $ | 986 |
| $ | 738 |
| $ | 517 |
| $ | 530 |
| $ | 469 |
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| Year Ended December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (US$, except outstanding share data) |
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Per Share Data: |
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Earnings per common share — basic(1) |
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Earnings to Bunge common shareholders |
| $ | 8.11 |
| $ | 6.11 |
| $ | 4.32 |
| $ | 4.73 |
| $ | 4.42 |
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Earnings per common share — diluted(2)(3) |
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Earnings to Bunge common shareholders |
| $ | 7.73 |
| $ | 5.95 |
| $ | 4.28 |
| $ | 4.43 |
| $ | 4.10 |
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Cash dividends declared per common share |
| $ | .740 |
| $ | .670 |
| $ | .630 |
| $ | .560 |
| $ | .480 |
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Weighted average common shares outstanding—basic |
| 121,527,580 |
| 120,718,134 |
| 119,566,423 |
| 112,131,739 |
| 106,015,869 |
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Weighted average common shares outstanding—diluted(2)(3) |
| 137,591,266 |
| 130,753,807 |
| 120,849,357 |
| 120,853,928 |
| 115,674,056 |
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| Year Ended December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (US$ in millions) |
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Consolidated Cash Flow Data: |
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Cash provided by (used for) operating activities |
| $ | 2,543 |
| $ | (411 | ) | $ | (289 | ) | $ | 382 |
| $ | 802 |
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Cash used for investing activities |
| (1,106 | ) | (794 | ) | (611 | ) | (480 | ) | (824 | ) | |||||
Cash (used for) provided by financing activities |
| (1,146 | ) | 1,762 |
| 891 |
| 21 |
| (91 | ) | |||||
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| December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (US$ in millions) |
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Consolidated Balance Sheet Data: |
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Cash and cash equivalents |
| $ | 1,004 |
| $ | 981 |
| $ | 365 |
| $ | 354 |
| $ | 432 |
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Inventories(4) |
| 5,653 |
| 5,924 |
| 3,684 |
| 2,769 |
| 2,636 |
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Working capital |
| 5,102 |
| 5,684 |
| 3,878 |
| 2,947 |
| 2,766 |
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Total assets |
| 20,230 |
| 21,991 |
| 14,347 |
| 11,446 |
| 10,907 |
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Short-term debt, including current portion of long-term debt |
| 551 |
| 1,112 |
| 610 |
| 589 |
| 681 |
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Long-term debt |
| 3,032 |
| 3,435 |
| 2,874 |
| 2,557 |
| 2,600 |
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Mandatory convertible preference shares(2) |
| 863 |
| 863 |
| — |
| — |
| — |
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Convertible perpetual preference shares(2) |
| 690 |
| 690 |
| 690 |
| — |
| — |
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Common shares and additional paid-in-capital |
| 2,850 |
| 2,761 |
| 2,691 |
| 2,631 |
| 2,362 |
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Total equity |
| $ | 8,128 |
| $ | 8,697 |
| $ | 6,078 |
| $ | 4,551 |
| $ | 3,655 |
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| Year Ended December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (in millions of metric tons) |
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Other Data: |
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Volumes: |
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Agribusiness |
| 117.7 |
| 114.4 |
| 99.8 |
| 97.5 |
| 88.6 |
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Fertilizer |
| 11.1 |
| 13.1 |
| 11.6 |
| 11.5 |
| 11.6 |
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Food products: |
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Edible oil products |
| 5.7 |
| 5.5 |
| 4.8 |
| 4.3 |
| 4.7 |
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Milling products |
| 3.9 |
| 4.0 |
| 3.9 |
| 3.9 |
| 4.0 |
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Total food products |
| 9.6 |
| 9.5 |
| 8.7 |
| 8.2 |
| 8.7 |
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Total volume |
| 138.4 |
| 137.0 |
| 120.1 |
| 117.2 |
| 108.9 |
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(1) Earnings per common share basic is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period.
(2) Bunge has 862,455 5.125% cumulative mandatory convertible preference shares outstanding as of December 31, 2008. The annual dividend on each mandatory convertible preference share is $51.25, payable quarterly. Each mandatory convertible preference share has an initial liquidation preference of $1,000, plus accumulated and unpaid dividends. As a result of adjustments to the initial conversion rates because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each mandatory convertible preference share will automatically convert on December 1, 2010 into between 8.2208 and 9.7005 Bunge Limited common shares. Each mandatory convertible preference share is also convertible at any time before December 1, 2010, at the holder’s option, into 8.2208 Bunge Limited common shares. These conversion rates are subject to certain additional anti-dilutive adjustments. Bunge also has 6,900,000 4.875% cumulative convertible perpetual preference shares outstanding. Each cumulative convertible preference share has an initial liquidation preference of $100 per share plus accumulated and unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each cumulative convertible preference share is convertible, at the holder’s option, at any time, into approximately 1.0854 Bunge Limited common shares (7,488,970 Bunge Limited common shares), subject to certain additional anti-dilution adjustments. The calculation of diluted earnings per common share for the year ended December 31, 2006 does not include the weighted
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average common shares that were issuable upon conversion of the preference shares as they were not dilutive for such period.
(3) In October 2005, Bunge announced its intention to redeem for cash the remaining approximately $242 million principal amount outstanding of its 3.75% convertible notes. In accordance with the terms of the notes, substantially all of the then outstanding convertible notes were converted into 7,532,542 common shares of Bunge Limited at the option of the holders prior to the redemption date of November 22, 2005. The calculation of diluted earnings per common share for the year ended December 31, 2005 includes the weighted average common shares that were issuable upon conversion of the convertible notes through the date of redemption. The calculation of diluted earnings per common share for the year ended December 31, 2004 includes the weighted average common shares that were issuable upon conversion of the convertible notes during this period.
(4) Included in inventories were readily marketable inventories of $2,741 million, $3,358 million, $2,325 million, $1,534 million and $1,264 million at December 31, 2008, 2007, 2006, 2005 and 2004, respectively. Readily marketable inventories are agricultural commodity inventories that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms.
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